ITC vs HUL: A Deep Dive into Dividend Yields History of 2 FMCG Majors

As the Indian FMCG sector gears up for Q4FY25 earnings, two industry giants — ITC Ltd. and Hindustan Unilever Ltd. (HUL) — are firmly in the spotlight. The interest isn’t just limited to their financial results but also their strong dividend track record, which makes them attractive to income-seeking investors.

Both ITC and HUL boast dividend yields above 1%, placing them among the top dividend-paying stocks in the FMCG space. Notably, HUL and ITC are among India’s top 10 most valuable companies by market capitalisation, with HUL holding a market cap of approximately ₹5.56 lakh crore, while ITC trails close behind at ₹5.28 lakh crore.

Dividend Declarations: FY25 Scorecard

In FY25 so far, both companies have rewarded shareholders with generous interim dividends.

  • ITC declared an interim dividend of ₹6.5 per share, translating to a 650% payout on its ₹1 face value.
  • HUL announced a much higher interim dividend of ₹29 per share, amounting to a 2900% payout on the same face value.

These are interim payouts, and both firms are expected to announce final dividends soon. HUL has scheduled a board meeting on April 24 to recommend the final dividend for FY25.

Dividend Yield: Who Delivers Better Returns?

While HUL’s absolute dividend payout is higher, the dividend yield — a key metric for measuring return on investment — tells a different story.

  • At its current market price of ₹422, ITC’s dividend yield stands at approximately 1.54%.
  • Meanwhile, HUL, trading at around ₹2,362.10, offers a lower dividend yield of 1.23%.

This makes ITC the more attractive option for investors focused on yield, despite HUL’s larger per-share payout.

Q3FY25 Financial Performance

ITC:

  • Standalone Net Profit: ₹5,638 crore (+1% YoY), beating analyst estimates.
  • Consolidated Net Profit: ₹5,013 crore (-7% YoY).
  • Revenue from Operations: ₹20,350 crore, up from ₹18,880 crore YoY.
  • Also declared its ₹6.5/share interim dividend during this quarter.

HUL:

  • Net Profit: ₹3,001 crore (+19% YoY).
  • Revenue: ₹15,818 crore, reflecting 1.6% growth YoY.
  • EBITDA Margin: Held steady at around 23.5%.

Stock Performance Snapshot

ITC closed its last trading session at ₹422, marking a 1.3% gain for the day. Over the last five days, the stock has climbed 4%, and it has gained 3.5% in the past month. However, the medium-term performance remains weak:

  • Down 15% over the last six months
  • Down 13% in calendar year 2025 so far
  • Slipped around 1% year-on-year

Conclusion 

In contrast, HUL’s stock movement wasn’t detailed in the latest session, but its consistent performance and profitability continue to attract investor attention, especially with dividend declarations and Q4 results on the horizon.

As both FMCG heavyweights prepare to release their Q4FY25 results, investors will closely monitor not just the earnings, but also the final dividend announcements, which could further impact their stock momentum in the coming weeks.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Indian Investors Now Among Top 5 Buyers in UK Property Market

Indian investors are emerging as one of the most active buyer segments in the United Kingdom (UK) property market, particularly in London. Their increasing presence is driven by favourable currency exchange rates, attractive rental yields, and strategic wealth diversification goals.

High-net-worth individuals (HNWIs) and Indian family offices are directing significant capital towards the UK’s stable and regulated property environment. For many, this is not just a lifestyle or prestige-driven decision but a long-term investment in global assets.

Over 50% of One London-Based Firm’s Investors Are Indians

London-based Source Property Investments provides a compelling example of this growing interest. In a rare move, it launched its luxury residential project ‘Halo’—developed by the renowned Berkeley Group—in India before introducing it in the UK.

Currently, over 50 per cent of Source Property Investments’ investor base comprises Indian nationals, a clear signal of how influential Indian buyers have become in shaping demand for UK real estate.

Knight Frank and Savills Rank Indian Buyers in Top 5

According to property consultants Knight Frank and Savills, Indian investors were among the top five international buyer groups in Prime Central London in 2024. Their investment in the region surged by more than 17% year-on-year, highlighting increased confidence and appetite for UK real estate.

This trend reflects a growing mix of motivations—from children pursuing education in the UK to entrepreneurs relocating or expanding their businesses internationally.

London Properties Average ₹10 Crore for Indian Buyers

On average, Indian investors are buying properties worth around ₹10 crore (approximately £950,000 or US$1.2 million). These purchases are often aimed at both capital appreciation and rental income—a dual benefit that makes UK properties particularly attractive.

The UK’s robust legal framework, stable rental market, and ease of property management add to its appeal among Indian investors seeking consistent long-term returns.

Education, Migration, and Global Mobility Fuel Demand

The spike in Indian interest is also closely tied to rising student mobility and business migration to the UK. With more Indian families sending children abroad for education or relocating parts of their business operations to the UK, property investment naturally follows.

Conclusion

With data pointing to increased volumes, a growing share of international deals, and unique project launches targeting Indian investors, it’s evident that Indian buyers are becoming a cornerstone of the UK’s premium real estate segment.

As global mobility continues and wealth planning becomes increasingly international, the influence of Indian investors in the UK property market is likely to grow even further.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

ITR Filing for AY 2025–26: Understanding Form Selection for Senior Citizens

As the income tax filing season for the Assessment Year 2025–26 approaches, taxpayers across India are preparing to meet their obligations. Among them, senior citizens have a unique set of exemptions and filing requirements under the Income Tax Act. According to a news report, selecting the correct ITR form is critical for accurate and compliant filing, especially for senior and very senior citizens.

Who Qualifies as a Senior and Very Senior Citizen?

In the context of income tax filing in India:

  • Senior Citizens are individuals aged 60 years or above but below 80 years at any time during the financial year. 
  • Very Senior Citizens are individuals aged 80 years or above during the financial year. 

The basic exemption limits vary accordingly:

  • ₹3,00,000 for senior citizens 
  • ₹5,00,000 for very senior citizens 
  • ₹2,50,000 for individuals below 60 years 

These limits define the threshold up to which income is not taxable. However, exemptions do not automatically exempt one from filing returns. Filing requirements still apply depending on income sources and amounts.

Choosing the Right ITR Form for AY 2025–26

The Income Tax Department has prescribed different forms based on the taxpayer’s income type and other factors. Here’s how senior citizens can determine which form is applicable:

ITR-1 (Sahaj)

Who can use it:
 Residents with total income up to ₹50 lakh from salary, pension, one house property (excluding loss brought forward), and other income (excluding lottery winnings and income from racehorses).

Who cannot use it:

  • Senior citizens who are directors in a company 
  • Individuals who held unlisted equity shares at any point in the previous year 
  • Persons with foreign assets or foreign income 

This is the most commonly used form for salaried or pensioned senior citizens with simple financial profiles.

ITR-2

Who can use it:
 Senior citizens with income from multiple properties, capital gains, or foreign sources. It also covers those who are not eligible for ITR-1 and do not have income from a business or profession.

Who cannot use it:
Those earning business income or under presumptive taxation.

ITR-2 is suitable for senior citizens with a slightly more complex income structure, such as investments or capital gains.

ITR-3

Who can use it:
Senior citizens who earn income from business or profession. It includes income under the head ‘Profits or Gains from Business or Profession’, and is applicable when the taxpayer does not fall under the categories of ITR-1, ITR-2, or ITR-4.

This form is comprehensive and accommodates those involved in business or professional activities.

ITR-4 (Sugam)

Who can use it:
Senior citizens who opt for presumptive taxation under Sections 44AD (business) or 44ADA (profession). The form is for those with a total income up to ₹50 lakh and having business income computed under these sections.

Who cannot use it:

  • Individuals with more than one house property 
  • Directors of a company or those holding unlisted shares 
  • Persons earning income from capital gains or foreign sources 

ITR-4 simplifies filing for senior citizens opting for the presumptive income scheme.

Conclusion

The choice of the appropriate ITR form for AY 2025–26 depends heavily on the nature and source of a senior citizen’s income. Filing the wrong form may lead to rejection or delays in processing returns. It is advisable to carefully read the form instructions or consult a tax expert for clarity based on individual cases.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

TATA IPL 2025: Duck or Century? Understanding Market Volatility and Risk Management

Every batsman in TATA IPL 2025 walks to the crease with two possible outcomes—scoring a century or getting out for a duck. Every delivery presents an opportunity or a threat, and how the batsman handles each ball determines the final score. 

Similarly, in the stock market, investors face constant fluctuations. Market volatility can either propel portfolios to new highs or lead to sharp losses. The key to success lies in risk management—knowing when to play aggressively and when to step back.

Read the Pitch: Understanding Market Volatility

Before a batsman plays his first shot, he carefully assesses the pitch conditions, the bowler’s form, and the field placements. A fast, bouncy pitch requires a different strategy than a slow, turning one. Similarly, in investing, understanding market volatility is crucial before making decisions.

Market volatility refers to the rapid price movements in stocks due to external factors such as economic events, global crises, or investor sentiment. Just like constantly changing match conditions faced by batsmen, markets can shift unpredictably. 

Sometimes, volatility presents opportunities for wins, much like a batsman facing the odd loose delivery. At other times, it warrants caution, much like a lethal spell from a fast bowler.

Read More: Tata IPL 2025: IPL & Investing: How Captains and Portfolio Managers Think Alike?

The Defensive Guard: Risk Management in Trading

Handling volatility is all about knowing when to attack and when to defend. Playing every ball with aggression increases the risk of getting bowled, just as taking unnecessary risks in the stock market can lead to losses. Effective risk management helps investors survive the tough spells and turn favorable conditions to their advantage.

One of the most effective defensive techniques in cricket is the forward press. That is, moving in early and getting behind the ball to absorb pressure. In trading, this translates to setting clear investment goals, diversifying assets, and using tools that protect capital in volatile conditions. One such tool is the Trailing Stop Loss, which acts as a safety net in unpredictable markets.

Preventing the Duck: The Power of Trailing Stop Loss

Even the best players can get out unexpectedly. A batsman can mistime a shot, get deceived by spin, or fall victim to an unplayable delivery. Sometimes, it is unavoidable to curtail such scenarios. Fortunately, traders and investors have the tools at their disposal to prevent a duck out.

In markets, stock prices fluctuate. Without protective measures, even a profitable trade can turn into a loss.

This is where Trailing Stop Loss comes to your rescue. It’s not unlike adjusting your stance based on the bowler’s attack. However, while a batsman may fail to execute this strategy on some occasion, a trailing stop loss won’t miss.  

Instead of setting a fixed stop loss (which exits the trade at a pre-set level), a trailing stop loss moves dynamically with the stock’s price. If the stock price rises, the stop loss level moves upward, locking in profits. But if the stock price falls beyond a certain threshold, it automatically exits the position, limiting losses.

For instance, imagine you invest in a stock at ₹100 with a trailing stop loss set at 10%. If the stock price rises to ₹120, the stop loss automatically moves up to ₹108. If the stock then falls to ₹108, it gets sold, securing a ₹8 per share profit instead of a loss. 

This strategy ensures you ride market uptrends while minimizing downside risks—just like a batsman rotating strike and avoiding risky shots during a tough spell.

Build a Strong Innings: Manage Risks While Chasing Big Scores

A batsman aiming for a century doesn’t play reckless shots. He builds his innings, picks the right balls to hit, and defends when necessary. Similarly, traders aiming for long-term wealth creation should have a structured plan to manage risk while seeking high returns. Here are a few ways to do this:

  1. Stay disciplined: Just as a batsman avoids swinging at every ball, investors should resist impulsive trades. Stick to a strategy and don’t get swayed by short-term market noise.
  2. Use protective measures: Trailing Stop Loss ensures that you don’t lose out on profits if the market turns against you. Think of it as the perfect batsman who adapts his approach while taking into account every risk that he plays against.
  3. Adapt to market conditions: Cricket maestros know how to adjust their game based on pitch conditions and match situations. Likewise, traders should monitor market trends, economic indicators, and news events to make informed decisions.

Don’t Fear Volatility: Learn to Thrive in a Fragile Market

Market volatility, much like an unpredictable bowler, can challenge even the most seasoned investors. But with the right mindset and tools, traders can navigate turbulent markets successfully. The goal is not to avoid volatility entirely but to use it strategically.

A great batsman relishes the challenge of a fast bowler charging in. Instead of fearing the short ball, he anticipates it and plays a well-timed pull shot. Similarly, investors should embrace volatility with a calculated approach. 

Trailing Stop Loss helps protect gains and prevent heavy losses, ensuring that even in uncertain conditions, your financial innings remains strong and on their way to a century.

Disclaimer: This blog has been written exclusively for educational purposes. http://bit.ly/usSGoH

8th Pay Commission: Basic Salary May Rise to ₹79,794 with DA Merger and Fitment Factor

The 8th Pay Commission is a proposed committee expected to revise the salaries, allowances and pensions of central government employees and pensioners in India. It will succeed the 7th Pay Commission, which currently governs the pay structure. Over 1 crore government employees and pensioners are closely watching the developments surrounding this panel.

While the formation of the commission was announced on January 16, 2025, the members of the panel are yet to be appointed. Once established, the panel will put forth recommendations—likely to be implemented by next year—that could impact incomes across various levels of government service.

Why is the 8th Pay Commission Important?

The pay commission serves as a crucial mechanism to ensure that the salaries of government employees are periodically revised in line with inflation and rising costs of living. It influences not only monthly salaries, but also retirement benefits, pension revisions, and various allowances.

Each pay commission has historically introduced a fitment factor, which multiplies the basic salary (often merged with a dearness allowance) to arrive at a revised pay structure.

Current Scenario Under the 7th Pay Commission

At present, the minimum basic pay for Level 1 employees under the 7th Pay Commission stands at ₹18,000. Over time, government employees have received dearness allowance (DA) hikes to counter inflation. As of the latest announcement, DA has been increased by 2%, bringing the total to 55%.

This means the effective current gross (basic + DA) for such an employee becomes:

₹18,000 + 55% DA = ₹27,900

What Might Change in the 8th Pay Commission?

One of the most debated topics is whether DA will be merged with basic pay before the fitment factor is applied—something that was done in previous commissions. If the 8th Pay Commission follows suit, it could significantly increase the total pay.

Here’s what the revised salary might look like for someone currently earning a basic pay of ₹18,000, based on different fitment factor scenarios applied on the merged ₹27,900:

  • Fitment Factor: 1.92 → Salary: ₹53,568
  • Fitment Factor: 2.57 → Salary: ₹71,703
  • Fitment Factor: 2.86 → Salary: ₹79,794

This means that salaries could potentially jump from ₹53,000 to ₹79,000, depending on the final fitment factor proposed.

Key Milestones Since January 2025

According to news reports, the timeline of activities around the 8th Pay Commission since the beginning of the year has been as follows:

  • January 16, 2025: The Government announces the formation of the 8th Pay Commission.
  • Subsequent Updates: Stakeholders await the formal appointment of the panel members, which is expected soon.

The steady developments indicate that salary structure changes could be proposed by late 2025 or early 2026.

Conclusion

The formation of the 8th Pay Commission is a highly anticipated move with potentially significant implications for central government employees and pensioners. While the final recommendations are still awaited, early discussions suggest a possible merger of DA with basic pay and application of a fitment factor, which may lead to a notable increase in take-home pay.

However, it is important to note that these projections are based on news reports and precedents, and final outcomes will depend on the recommendations of the newly appointed panel.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Why Auto Stocks Were Up on April 11: Know the Key Reasons!

Indian equity markets ended the week on a high note with the Nifty50 index climbing above the 22,800 mark on Friday, recording a sharp 1.88% gain as of 3:22 PM. This marked the sharpest single-day rally in over three months. Notably, all sectoral indices were trading in the green — a rare and reassuring sight for investors.

Nifty Auto Index Bounces Back Strongly

Among the best-performing sectors was the Nifty Auto index, which rose over 2% on the day. This rally comes after a recent correction where the index fell nearly 12.6% from its March 25 high to its April 7 low. Since hitting those April lows, the index has rebounded more than 6%, indicating renewed investor interest and optimism in the sector.

RBI Rate Cut: A Timely Boost for the Auto Sector

A significant factor contributing to the upbeat sentiment was the Reserve Bank of India’s recent decision to cut interest rates. The 25 basis point reduction in the repo rate is expected to bring down borrowing costs, making vehicle loans more affordable for consumers.

The Society of Indian Automobile Manufacturers (SIAM) lauded the move. Mr Shailesh Chandra, President of SIAM and Tata Passenger Electric Vehicles, stated that the rate cut would “improve vehicle accessibility by reducing financing costs.” This development comes at a time when easing inflationary pressure has opened the door for policy support, much needed by the auto sector, which has been grappling with high costs since 2022.

Export-Focused Auto Firms Gain on Tariff Relief

Adding to the tailwinds was a global development. On April 9, US President Donald Trump announced a 90-day pause on reciprocal tariffs for all nations except China. This move was particularly beneficial for Indian auto firms with significant exposure to exports, leading to strong buying interest in several countries.

Samvardhana Motherson emerged as the top gainer within the Nifty Auto index, as the market responded favourably to the news. The tariff relief is seen as a short-term booster, allowing companies to re-align their export strategies without the immediate pressure of higher trade barriers.

Conclusion

While it’s too early to call it a full-fledged turnaround, recent developments have certainly provided much-needed relief to the auto sector. From supportive monetary policy at home to a temporary easing of global trade tensions, the environment appears more constructive — at least in the near term.

However, as with all sectors, sustainability of the rally will depend on how these macro developments unfold in the coming months and whether demand revival translates into actual sales growth.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Ayushman Bharat Scheme: Delhi Government Begins Registration, How to Apply

In a significant development, Delhi has commenced registration for the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), a government-backed health insurance scheme aimed at offering healthcare access to economically disadvantaged families. After a long delay of over a decade, the national capital has become the 35th state or Union Territory to implement the scheme, marking a pivotal moment in public health policy for the region.

Launch and Implementation in Delhi

On Wednesday, Delhi Health Minister Pankaj Kumar Singh announced the commencement of registration for the Ayushman Bharat scheme, stating that it would officially begin on Thursday. The registration marks the first phase of implementation in the capital, with citizens now eligible to receive benefits that had previously been inaccessible for the past 11 years due to a lack of execution.

Speaking to reporters, Singh emphasised the importance of the MoU signed between the Delhi government and the National Health Authority (NHA) on April 5. “This MoU will strengthen the facilities and infrastructure for the people of Delhi,” he stated. Singh also expressed the government’s commitment to fulfilling its promises and improving the overall healthcare system in the city.

The scheme offers health insurance coverage of up to Rs 5 lakhs per family annually, covering hospitalisation costs for secondary and tertiary care. It targets the economically weaker sections, aiming to reduce the financial burden on families in need of medical treatment.

How To Apply?

Following steps are required:

  1. Visit pmjay.gov.in
  2. Click on PMJAY for 70+. You will be moved to the beneficiary.nha.gov.in login page.
  3. Enter your mobile number and accurately fill in the captcha shown on the screen.
  4. Enter the OTP that you have received on your registered mobile number.
  5. Select the state to proceed with your application for this health insurance scheme.
  6. Check eligibility. If eligible, your name will appear on the right-hand side of the page.
  7. If your PMJAY card is not available. Click on ‘Apply’ under the ‘Action’ column to register.
  8. Complete your Aadhaar authentication by mentioning the OTP received on your Aadhaar-linked mobile number.
  9. After successful verification, you will now be registered for the Delhi Ayushman Bharat Pradhan Mantri Jan Arogya Yojana.

Conclusion

The implementation of AB-PMJAY in Delhi represents a critical step forward in expanding healthcare accessibility to all corners of India. With registration now open, the capital’s most vulnerable citizens can finally benefit from the country’s largest publicly funded health insurance scheme. This move not only signals the end of a prolonged delay but also renews hope for the future of healthcare in Delhi.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Tax Exemption Claims for Senior Citizens Over 75 Years of Age – True or False?

A message has been widely shared on social media stating that senior citizens above 75 years of age do not have to pay income tax. It attributes this change to a government decision following India’s 75th year of independence.

This claim, however, is completely false.

What Does the Law Actually Say?

According to a post by the PIB Fact Check handle on X, under Section 194P of the Income Tax Act, senior citizens aged 75 or above who meet specific criteria are exempt from filing an income tax return (ITR). This does not mean they are exempt from paying taxes.

To qualify for this exemption from filing ITR, the following conditions must be fulfilled:

  • The individual must be a resident Indian senior citizen aged 75 or above.
  • They must have only pension income and interest income (earned from the same bank where they receive the pension).
  • The specified bank will compute its total income and deduct applicable tax after allowing deductions (like under Section 80C).

Role of the Specified Bank

The exemption hinges on the bank being classified as a “specified bank” by the government. These banks are authorised to:

  • Compute the taxable income of such senior citizens
  • Deduct TDS (Tax Deducted at Source)
  • Ensure tax compliance without requiring the citizen to file an ITR

To benefit from this provision, eligible individuals must submit Form 12BBA to the bank with a declaration and proof of deductions.

PIB Fact Check: The Message Is Fake

The Press Information Bureau (PIB) Fact Check team has officially debunked the viral message. They clarified that there is no blanket exemption from paying taxes for citizens above 75. The exemption is only from filing returns and only for those who meet strict criteria.

Conclusion 

Being exempt from filing an ITR is not the same as being exempt from paying taxes. If income tax is applicable, it will still be deducted by the authorised bank even if an ITR is not filed.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

MGL and IGL Share Price in Focus Amid Reports of APM Gas Allocation Cut

On April 11, 2025, shares of Mahanagar Gas Limited (MGL) and Indraprastha Gas Ltd (IGL) exhibited notable intraday volatility. According to a news report, this turbulence was triggered by concerns surrounding a potential reduction in the allocation of Administered Pricing Mechanism (APM) gas to City Gas Distribution (CGD) companies.

MGL’s stock opened the session at ₹1,286, which also turned out to be the intraday high, and slid to a low of ₹1,238 as the session progressed. Similarly, IGL shares touched an intraday high of ₹180.55 before settling lower at ₹175 by 3:05 PM. Both counters reflected a swift pullback from their highs, driven by investor caution.

Understanding APM Gas and Its Importance for CGD Players

APM gas is domestically produced natural gas sold at regulated prices significantly lower than international or market-linked rates. For CGD companies such as MGL and IGL, APM gas plays a critical role in ensuring cost-effective supply, particularly for domestic piped natural gas (PNG) and compressed natural gas (CNG) used in vehicles.

The current allocation policy provides up to 50% of their requirements from cheaper APM gas sources. Any reduction in this quota may directly impact the cost structure of these firms, especially if the shortfall is substituted by costlier gas from new fields or imports.

Impact on Margins and Investor Sentiment

According to the news report, the government may reduce the APM gas allocation from 50% to 40%, forcing CGD firms to procure a greater share of their requirements from higher-priced alternatives. Such a shift is expected to increase the overall input costs, putting pressure on operating margins.

The immediate response in the stock market reflected this concern. MGL, in particular, saw its intraday gains fade as traders digested the potential impact of higher procurement costs on future earnings. A similar sentiment was observed in IGL, which also pulled back from session highs.

Broader Implications for the CGD Sector

If the reported reduction in APM gas allocation materialises, it could mark a turning point for the cost dynamics of the CGD industry. While companies may attempt to pass on some of the additional costs to end consumers, there are regulatory constraints and demand sensitivities that could limit their pricing power.

Moreover, rising input costs without a proportionate increase in selling prices may compress profit margins, particularly in high-volume, price-sensitive segments like public transport and residential users.

Conclusion

The reported potential cut in APM gas allocation has brought cost concerns to the forefront for CGD companies. As of now, no official confirmation has been issued, but the market reaction underscores the sensitivity of CGD players to input cost fluctuations, especially those tied to government-controlled resources. Investors and industry observers alike are likely to monitor further developments closely.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Equity Inflows Dip in March 2025; Sectoral and Thematic Inflows Plunge by 97%, SIPs Inflows Decline

Equity mutual fund inflows registered a sharp decline in March 2025, falling to ₹25,082 crore from ₹29,303 crore in February – a drop of 14.4%, according to the latest AMFI data. The fall suggests investor hesitation amidst market uncertainty, fueled by global macroeconomic concerns and domestic headwinds.

Sectoral and Thematic Funds Witness 97% Drop in Inflows

The most dramatic shift was observed in Sectoral and Thematic Funds, where net inflows plunged 97%. These funds, which had attracted ₹5,712 crore in February, barely garnered ₹170 crore in March. This steep drop indicates a significant retreat by investors from theme-based or niche sector strategies during turbulent times.

SIP Inflows Record 4th Straight Monthly Decline

Systematic Investment Plan (SIP) inflows also continued their downward trend for the 4th consecutive month. In March 2025, SIP collections stood at ₹25,926 crore, slightly lower than ₹25,999 crore in February. While the dip may appear marginal, the consistent decline over several months reflects cautious behaviour by retail investors in response to volatile market conditions, US tariff concerns, inflationary pressures, and geopolitical developments.

Equity AUM Rises Despite Drop in Fresh Inflows

Interestingly, despite the decline in monthly inflows, the total equity assets under management (AUM) saw a notable increase. As per AMFI, equity AUM rose by 7.6%, from ₹27.4 lakh crore in February to ₹29.5 lakh crore in March 2025. This growth was likely driven by market appreciation and sustained long-term investments.

Mixed Performance Across Market Cap Categories

The equity mutual fund segment showed varied trends across market capitalisation categories:

  • Largecap Funds saw inflows decline by 13.5%, down from ₹2,866 crore in February to ₹2,479 crore in March. 
  • Midcap Funds posted a slight increase in net inflows, rising to ₹3,439 crore from ₹3,406 crore. 
  • Smallcap Funds recorded a healthy 10% month-on-month growth in inflows, climbing from ₹3,722 crore in February to ₹4,092 crore in March.

Liquid Funds See Steep Outflows

Liquid funds, which typically attract short-term capital due to their low-risk nature, witnessed a significant outflow of ₹1.33 lakh crore in March. This marks a stark contrast to February, when the category saw inflows of ₹4,977 crore. These funds invest in short-term debt instruments with maturities of up to 91 days and are often used by corporates to manage surplus liquidity.

Debt Fund Outflows Surge on Liquid Fund Redemptions

As a result of the heavy redemptions in liquid funds, the overall debt mutual fund category saw net outflows of ₹2.02 lakh crore in March. This is a significant reversal from February’s inflows of ₹6,525 crore. Such movements are often linked to institutional repositioning, fiscal year-end cash requirements, or shifts in interest rate expectations.

Overall Mutual Fund AUM Continues to Grow

Despite the challenges, the mutual fund industry’s total AUM continued to grow, reaching ₹65.74 lakh crore in March 2025 from ₹64.53 lakh crore in February. This rise highlights the resilience of the broader investor base and the impact of rising asset prices across segments.

Conclusion

March 2025 brought a combination of caution and continuity for the Indian mutual fund industry. While inflows into equity mutual funds, especially sectoral and thematic schemes, fell sharply, and SIPs continued to decline, overall AUM rose steadily. The data points to a discerning investor class, adjusting allocations in light of ongoing global and domestic challenges.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.